The Debt Arrangement Scheme Solution

July 24, 2019
Different Debt Solutions

Debt Arrangement Scheme

Anyone in Scotland that is struggling to pay off their debts to creditors can choose to obtain the Debt Arrangement Scheme, also referred to as DAS. The Scottish government backs the schemes, which were first introduced in 2004 through legislation. The schemes were meant to provide protection to individuals from court actions taken by creditors and allowed them to manage their personal debts without declaring insolvency.

How do Debt Arrangement Schemes work?

The Debt Arrangement Schemes are meant to function in a manner that will help people overcome their problems in debt management and get towards a sustainable and healthier financial position. DAS don’t have negotiations or insolvency around what parts of the debt of a person should be written off and what should be paid back. A DAS is created around a Debt Payment Program (DPP), which establishes a plan for how someone can pay back their debt over time. A DAS Approved Advisor is the main figure in the entire process, and their main job is to work with debtors and creditors to ensure that an agreement is reached by all the involved parties.

Why Should You Enter A DAS?

If you’ve lost control of your finances, and your personal debts are increasing, then you should act fast to ensure that you don’t get into more financial trouble. There are several debt management solutions you can try, but if you’re looking for a simple way to take control over your finances then a Debt Arrangement Scheme is the best solution for you.

In Scotland, government legislation backs up DAS. It offers peace of mind and legal protection to the involved individuals. Even though a DAS won’t decrease the amount of money owed to creditors by an individual, it has terms that include freezing all interest and charges on previous debts.

Who Does DAS Help?

People with regular income streams who want to find the best IVA company, who can pay back their debts but under the mounting pressure of their debts increasing should take advantage of Debt Arrangement Schemes. The DAS will be a suitable solution for anyone that has got disposable income, once they have paid off their living expenses and those individuals, who want to pay off their current debts without being constantly placed under pressure by their creditors.

The Debt Arrangement Scheme will be perfect for you if you want to buy some more time for yourself and improve your financial standing so that you can pay off your debts eventually. If you’re not in a position to realistically pay off your debts completely, then you should opt for other options such as sequestration or Trust Deeds.

How Does a DAS Work?

When all the terms of the Dept Payment Plan have been agreed, there will be an amount that the debtor must pay out every month as a lump sum. The Common Financial Tool is used to calculate the amount, which is a calculator that is used for assessing different contributions. The amounts can be paid off with the help of standing order payments through employee payment mandates, or through any kind of payment cards. The funds will be transferred as agreed by the debtor, as a lump sum payment, which will be passed to the designated Payments Distributor of all parties.

Your creditors won’t be allowed to add any fees, interest, or charges to your debt if you’re complying with the repayment terms that were agreed with them. After you have repaid all the money owed, you won’t need to follow the term of the DAS, and the scheme will end.

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